"The Big Shot"

L

lamarw

New member
This article was in today's New York Times. It is chocked full of information for all of us with a gun interest and makes for a good read.

There are also many things near the end of the article which I find of some concern. If the facts in the story are true, then there are now a lot of eggs in the basket of the "Freedom Group" and/or "Cerberus". It appears there is a lot of debt there and this conglomerate is counting heavily on future sales of lots of guns.

http://www.nytimes.com/2011/11/27/b...strys-giant.html?scp=1&sq=The Big Shot&st=cse

It will be interesting to hear other's take.
 
Other then the typical left wing slant ala
"Unlike military counterparts like automatic M-16’s, rifles like those from Bushmaster don’t spray bullets with one trigger pull. But, with gas-powered mechanisms, semiautomatics can fire rapid follow-up shots as fast as the trigger can be squeezed. They are often called “black guns” because of their color. The police tied a Bushmaster XM15 rifle to shootings in the Washington sniper case in 2002."
Click to expand...

The debt is an internal affair to some extent as it is a separate entity controlled by Cerberus which no doubt is in it for profit (why else you run a business)
"That includes about $225 million in debt that the company raised last year to pay itself a special dividend used to buy back preferred stock from Cerberus, according to a company prospectus filed with the S.E.C."
Click to expand...

There is plenty of consolidation in the business world, especially when things are going bad (as economy of scale is a way to cut cost). While I have little faith in Cerberus I dont think this matters much. If they fail, someone else will just take there place. The machines which build the guns will still be good and will be sold off to the highest bidder at a bankruptcy hearing. The guns would go on under a different name. Its all part of the free market (although not the public market), and its a good thing.
 
That's not nearly as funny as the Springfield Armory site. The About Us section begins with a statement that George Washington ordered the creation of Springfield Armory in 1777.

He did, but it has nothing to do with the current company. At least Cerberus bought functioning companies with real live histories.

John
 
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